Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Service tax liability

457 views

Save Share

Join Us Follow Us Add as Source

kamal

Others

21 Points Posted on 06 June 2015

sir/ma'am,

we are into slitting of CRNO/CRCA steel coils , the material being sent by our customers.

we do slitting jobwork for them.and charge our labourcharges for the same.

all our customers are under excise.are we liable to pay service tax.

and there are few customers who are not under excise.and to such customers is there any limit .

and we are registered under SSI.

please clarify.

regards,

KAMAL.K

Replies (1)

If your customers are registered under Excise you are eligible for exemption from payment of excise duty. However if your customers are not registered under excise then you have to charge service tax on your labour charges. But even in case of such customer you can claim exemption up to Rs. 10 lakh. After your labour charges exceed 10 lakh you have to charge & collect service tax on each bill raised on non-excise registered dealers